Denmark’s Orsted has agreed to sell a 50% stake in its flagship Hornsea 3 offshore wind project in the United Kingdom to Apollo Global Management for around 39 billion Danish crowns ($6.09 billion), in what analysts describe as a crucial move to prevent a potential credit rating downgrade.
The deal, announced Monday, marks a turning point for Orsted, the world’s largest offshore wind developer, which has been grappling with soaring project costs, supply chain disruptions, and a challenging investment climate for renewable energy. The company also faces added pressure from U.S. President Donald Trump’s administration, whose opposition to renewable energy projects has fueled uncertainty in global green investment flows.
The transaction gives Apollo — a U.S.-based private equity firm managing more than $800 billion in assets — half ownership of the £8.5 billion ($11.4 billion) Hornsea 3 project. Orsted will retain the remaining 50%. The project, located in the North Sea, is expected to be the world’s largest offshore wind farm once completed in 2027, with a capacity of 2.9 gigawatts — enough to power over three million British homes.
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In a statement, Orsted said the deal was part of a broader effort to strengthen its financial position and “balance the key objectives for partnerships and divestments with an emphasis on capital management.” The company described the sale as a “key milestone in Orsted’s funding plan.”
Apollo’s investment not only covers the acquisition of the stake but also includes a commitment to fund 50% of the project’s remaining construction costs.
“This is the latest large-scale transaction here in Europe where we are investing behind energy infrastructure, transition assets, AI and other key priorities,” said Leslie Mapondera, Apollo Partner and Co-Head of European Credit, in a separate statement.
The move points to Apollo’s growing footprint in Europe’s energy transition space. Earlier this year, the firm announced it would provide £4.5 billion in financing for Britain’s long-delayed Hinkley Point nuclear project, expanding its exposure to strategic infrastructure assets.
For Orsted, however, the Hornsea 3 sale is about survival as much as strategy. The company has endured one of the toughest periods in its history, with its share price plummeting 85% from its 2021 peak. On Monday, its stock closed at 115 Danish crowns, reflecting investors’ lingering concerns about profitability in the renewable sector.
Last October, Orsted raised $9.4 billion through a deeply discounted rights issue aimed at stabilizing its balance sheet. It later announced plans to cut about a quarter of its workforce by 2027. These drastic steps followed a series of cost overruns and project cancellations — including the Hornsea 4 project in May, which was abandoned due to escalating supply chain costs, higher interest rates, and execution risks. The company said that scrapping Hornsea 4 would cost up to 5.5 billion Danish crowns.
The Hornsea 3 deal comes amid growing ESG pressures that have reshaped how investors view green projects. Rising inflation and higher financing costs have made long-term renewable ventures less attractive, while regulatory tightening in both Europe and the United States has intensified scrutiny of environmental claims and project economics.
The renewable energy sector, once hailed as a low-risk bet for institutional investors, is now contending with skepticism over cost efficiency, execution risk, and political headwinds. Analysts note that the recent backlash against ESG-focused investing — particularly in the U.S. — has further complicated the financing environment for clean energy developers.
Still, for Orsted, the Apollo partnership offers breathing space. The transaction is seen as an essential vote of confidence from private capital in Europe’s energy transition, even as the broader renewables sector struggles to maintain momentum.
Hornsea 3, when completed, is expected to become the largest offshore wind project ever built.